5 March 2007

                            TERM SHEET AGREED FOR

Austindo Resources Corporation NL (“Austindo”) is pleased to announce that it has agreed
non-binding indicative terms and conditions in respect of a Convertible Note Facility to raise
US$20 million (with provision for oversubscriptions up to a further US$5 million). Funds
raised pursuant to this Facility will primarily be applied to the completion of the Cibaliung
Gold Project.

South East Asian Strategic Assets Fund (“SEASAF”) and its advisor CIMB-Standard
Strategic Advisors Pte Ltd of Singapore will arrange the Facility in co-operation with Austock
Corporate Finance Limited (“Austock”).

It is anticipated that SEASAF (subject to its final Investor Committee approval) will
participate for US$10 million of the Convertible Note facility. It is further contemplated that
participants in a US$5 million bridging facility arranged in December 2006 will roll into the
Convertible Note facility. Austock will arrange the US$5 million balance of the facility.
Oversubscriptions will be jointly managed by SEASAF Austock.

Draw down is subject to the successful finalisation of formal documentation and the
satisfaction of a number of conditions precedent, including, but not limited to, shareholder
approval and the preparation of a new engineering/mining plan covering for the decline
development, steps to be taken to the start of ore extraction and methodology required to
ramp-up to full production. It is anticipated that shareholder approval will be sought at the
Company’s Annual General Meeting which is presently scheduled to be held on 18 May

The Cibaliung Gold Project is located in Banten Province near the western tip of the island of
Java, 150km south west of Jakarta. The funds raised will also be utilised to reinstate corporate
funds applied to the development of the Cibaliung Gold Project.

Drawdown of this facility will enable substantive work to resume at Cibaliung and ensure that
gold production is achieved at the earliest opportunity.

Key Commercial Terms

The Convertible Notes will have a five year term and be convertible (at the option of the
holder) at an time, at an issue price of US$0.018263 per share, determined as a 15% premium
to the US$ equivalent of the volume weighted price of Austindo shares over the 20 trading
days preceding 1 March 2007.
A Base Interest Rate of 10% per annum plus an Agency Fee of 2.0% per annum is payable
over the life of the Convertible Notes payable semi-annually. The interest and agency fee may
be paid in Austindo shares (at a 5% discount to market) at Austindo’s election.

The term sheet also contemplates that Austindo may retire the Convertible Notes, in whole or
in multiples of 20%, if after 24 months from the issue date the 20-day VWAP of Austindo
shares is 50% above the conversion price (subject to a continue right of the Convertible Note
holder for 10 trading days to elect to convert).

The Convertible Notes will be secured (with the consent of ANZ) over Austindo’s interest in
the Cibaliung Gold Project and also over all of Austindo’s interest in its other Indonesian

For further information please contact:

Bruce J. Watson                                    Andrew J. Cooke
Chairman                                           Company Secretary

Tel: + 61 2 9236 7566                              Tel: + 61 2 9419 8044

Email: bwatson@cubecorp.com.au                     Email: andrewcooke@arx.net.au


Formed in 1983, Austindo Resources Corporation NL is an Australian listed gold company
focused on developing projects in Indonesia. The company’s key project is Cibaliung, a high-
grade epithermal gold/silver vein system located southwest of Jakarta in Banten Province,
western Java. Cibaliung is expected to produce at an annual rate of 70,000 oz (gold
equivalent) with an average life of mine cash operating costs of approximately US$215 per

Two key strategic alliances in Indonesia are taking Austindo closer to achieving its growth
objective. In association with Anglo American Group, the Company is exploring for large
porphyry copper/gold deposits in Papua. In addition the Company has a 95% joint venture
interest with PT Sumber Mineral Nusantara in the Pekalongan and Trenggalek tenements
located in Central and East Java respectively, areas prospective for low sulphidation
epithermal gold/silver deposits similar to the Cibaliung project.

Bruce Watson – Chairman
George Tahija – Non-Executive Director
John Carlile – Non-Executive Director
Christopher Melloy – Non-Executive Director


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